The outspoken chief executive of Fiat Chrysler Automobiles NV is worried that new provincial policies will add to the cost of building cars in Ontario. But with a provincial government that describes itself as “passionate” about the auto sector, it’s curious why he would think he has reason to fret.

Sergio Marchionne was in town last week for the Toronto Global Forum, a summit that brings together heads of state, CEOs and other bigwigs to network and discuss financial and economic issues. He sat next to Ontario Premier Kathleen Wynne at lunch Friday and said he raised concerns about specific government policies, including plans for a provincial pension plan and a cap-and-trade system for greenhouse gases.

“This is not what I would call the cheapest jurisdiction in which to produce,” the Italian-Canadian CEO said during a panel discussion.

“These are all things that add to the cost of running operations,” he added in a press conference afterward. “They don’t come for free.”

The mayor of Windsor, Ont., a major auto manufacturing hub, later said that Marchionne’s comments were “consistent” with what he’d been hearing from investors. The city had recently lost bids for huge projects by Volvo Cars and Jaguar Land Rover Ltd., who took the jobs to the U.S. instead. “It’s concerning… Because everything that puts us at a disadvantage, it’s concerning,” the mayor, Drew Dilkens, told Postmedia this week.

Although Marchionne himself may not be able to stop the government from plowing ahead with its costly plans, the reality is that his concerns aren’t exactly falling on deaf ears. In this province, they may even win Chrysler a subsidy.

In fact, Marchionne met with the premier and economic development minister Brad Duguid before Friday’s lunch — at their behest — and described the discussion as “cordial.”

“It was a very, very good meeting that we had,” Duguid agreed. “I can assure you that as we implement those policies, we’re doing it in concert and consultation with business to ensure that competitive impacts are minimized, if not eliminated.”

In an interview, Duguid described the Liberal government as “passionate” about the auto sector and said his “No. 1 priority” is securing future production for the General Motors plant in Oshawa and the Chrysler plant in Brampton.

“In fact, we ensure as we’re developing public policy that the auto sector’s always at the table,” he added.

This is not what I would call the cheapest jurisdiction in which to produce

Charlotte Yates, principal investigator at the Automotive Policy Research Centre at McMaster University, said some of the government’s policies may pose challenges to automakers, but they’re certainly not going to turn their back on the sector.

“This government in Ontario is one of the most committed to advanced manufacturing that we’ve seen in decades,” Yates said in an interview.

“They have a very clear and articulated interest in pursuing and developing Ontario’s capacity for advanced manufacturing.”

That still doesn’t mean it’s going to be easy for the government to convince automakers to choose Ontario over cheaper jurisdictions like Mexico.

Duguid emphasized that Ontario’s auto sector has made investment commitments totalling nearly $4 billion since November — that figure includes spending promises made by GM, Chrysler, Honda and parts maker Linamar Corp. — but the reality is that production is moving southward at a faster and faster clip.

Canada’s share of North American vehicle production fell to 14.1 per cent last year, its lowest level since the late 1980s, and total auto industry employment has shrunk by about one-third since 2001.

That makes it easy for automakers to go cap-in-hand to government for handouts, threatening to move production elsewhere if they don’t get what they want.

Marchionne himself asked for $700 million in early 2014 before then-Progressive Conservative leader Tim Hudak said the government shouldn’t pay “a nine-figure ransom” to keep Chrysler in Ontario. That led Marchionne to withdraw his request, saying he didn’t want the company to be used as a “political football.”

When asked if the subject of subsidies came up during their meeting last week, Duguid said: “We talked about our determination to ensure that we land a future mandate for the Brampton Chrysler plant,” which needs a major overhaul.

But Charles Lammam, director of fiscal studies at the free-market-supporting Fraser Institute, said further subsidizing the auto industry would be a big mistake for a government that’s already mired in its own fiscal problems.

“I think the government needs to be very deliberate and measured in how it enacts economic policy, and that means staying away from policies that are targeted to one industry over another,” Lammam said in an interview.

“Marchionne’s comments should not be taken as encouraging the government to create a new policy that favours the auto industry — that should be avoided at all costs.”